An arbitrator has issued a Final Award in favor of an LTL client in a complex business partnership dispute, including a significant award of attorneys’ fees. In the arbitration, our client alleged that a former business partner breached fiduciary duties and other obligations while managing their joint real estate investments. After a multi-week hearing, the arbitrator found in our client’s favor on key claims and took the rare step of awarding our client his attorneys’ fees and costs, citing the defendants’ disloyal conduct. In the Final Award dated issued in May 2024, the arbitrator awarded approximately $1.93 million in attorneys’ fees and costs, in addition to nominal damages to recognize the breach of fiduciary duty. This fee award was made to discourage disloyalty by fiduciaries in closely-held ventures.
The arbitration award also granted other relief against the respondents. This included an award of prejudgment interest and a finding that the defendants breached a prior settlement agreement by failing to timely pay a required installment, resulting in additional liability. LTL Attorneys presented a comprehensive case that uncovered how the defendant engaged in a covert scheme to oust his own business partner through misrepresentations and manipulation. The arbitrator’s decision to award nearly two million dollars in fees is a strong statement condemning the misconduct and upholding our client’s rights. This victory validates the principle that equity will intervene to fully compensate victims of fiduciary breaches.